Anyone gone down the Plastic Money Route?

[davetheglitz]

It seems that cheques are going to be phased out at some time in the future. http://www.financemarkets.co.uk/2009/09/21/banks-plan-to-phase-out-cheques/. Has anyone found a cheap way of taking credit/debit cards - and has it been worthwhile?

 

[Lurch]

As I mentioned in a thread the other day, a quick Google found a

 

[NozSpark]

I had a look at that link...

It's an internet terminal, not a POS!!

 

[Lurch]

It's an internet terminal, not a POS!!

Yes, and?

 

[davetheglitz]

May have got the wrong end of the stick here - but it seems this is an add on. It appears that you need a Merchant Bank account - which has it's own costs.

 

[ProDave]

Looks like cash will be king in a few years.

This "no cheques" thing has not been thought out properly, at least not with the small sole trader in mind.

Yes people can still pay cash.

Or yes people can pay by direct bank transfer.

But I just like doing a job and getting paid straight away either with cash or a cheque (which is how 99% of domestic customers pay). I much less prefer giving them an invoice and waiting for them in their own time to get around to making a payment by bank transfer (which is how 99% of commercial customers pay - anything up to 2 months before I'm paid).

If you have a PayPal account, you can set it up for anyone to pay you by credit card on line, but it's a clumsy process and they charge you a few % commission on each transaction. But at least there are no other monthly or annual charges.

 

[batty]

Another cost to the small business no doubt.

X(

 

[Lurch]

May have got the wrong end of the stick here - but it seems this is an add on. It appears that you need a Merchant Bank account - which has it's own costs.

You might be right there, the site I happened to link to is a bit vague in some areas.

Looked at some of the main banking sites and they do various services, both online and mobile terminals, but pricing info is not very abundant. I looked at direct debits for another business and we would have to pay an extortionate amount to do this through our own account or pay someone else a not quite so extortionate amount to do the direct debit bit for us and just send us the funds.

 

[Apache]

Isn't there an iphone app for taking credit cards? Anyone know the costs?

If cheques go I'd imagine all the smartphones would have similar apps.

 

[Andy™]

i know there is something available for blackberry - i was going to use it, but never got round to it. basically, you typed card details onto phone, they processes & send customer receipt and put money into your account. iirc, it was a few

 

[m4tty]

I heard it was 2018 that cheques were going to be phased out by

 

[Andy™]

knowing the competency of this government, it will probably run late. maybe sometime around 2518?

 

[Andy™]

either that, or it was planned for 2012, but they know it will be a few years late so have said 2018...

 

[batty]

I cannot see how all this is going to work. Some people have not even got computers my mother being one of them. Not everbody wants new technology.

 

[exbdc]

I cannot see how all this is going to work. Some people have not even got computers my mother being one of them. Not everbody wants new technology.

But by the time it comes in the generation that are the major problem will have shuffled off this mortal coil. The next generation to them will be mainly computer literate & won't have as many objections.

 

[Lurch]

But by the time it comes in the generation that are the major problem will have shuffled off this mortal coil. The next generation to them will be mainly computer literate & won't have as many objections.

Plus no-one cares. If the banks want to phase out cheques they will, what are we going to do?

 

[davetheglitz]

At this moment in time I haven't got a clue where my cheque book is. For all my shopping I rely on a debit card - and I suspect the majority of spending is like this.Consequently I could see the banks accelerating the demise of the cheque as it takes more processing and is more prone to error.

 

[exbdc]

I've just looked at my cheque book & I've written out 3 cheques in the last 2 years.

Santander are speeding up the process as their new debit cards will not double up as a cheque guarantee card.

 

[ProDave]

But by the time it comes in the generation that are the major problem will have shuffled off this mortal coil. The next generation to them will be mainly computer literate & won't have as many objections.

You are missing the point.

I use direct debits, standing orders, credit cards and internet banking. So it won't bother me for PAYING bills if I can't write a cheque.

But it WILL bother me for getting PAID for the work I do as a self employed electrician.

At the moment, 99% of domestic work I get paid for instantly on completion of the job, either by cash if it's a small amount, or a cheque for a larger amount. That means instantly I know I have been paid and there is no hassle.

If my customers can no longer write a cheque, then either they need to have anticipated the amount and have a large wad of cash ready, OR they are going to say send an invoice and I'll pay by bank transfer (or some other electronic means) which means the delay in producing and posting the invoice, then the delay in them getting around to paying the bill some time in the future when they can be bothered.

So in short, I can see a LOT more late payments to chase up. Something I currently only have to do for commercial customers (who won't pay instantly by cheque)

That is unless we all pay some money to someone to provide us with a portable POS terminal to take instant payment by credit card. Which will cost, so the costs will have to be passed on to the customer.

Now do you see the problem that concerns some of us?

 

[exbdc]

You are missing the point.I use direct debits, standing orders, credit cards and internet banking. So it won't bother me for PAYING bills if I can't write a cheque.

But it WILL bother me for getting PAID for the work I do as a self employed electrician.

At the moment, 99% of domestic work I get paid for instantly on completion of the job, either by cash if it's a small amount, or a cheque for a larger amount. That means instantly I know I have been paid and there is no hassle.

If my customers can no longer write a cheque, then either they need to have anticipated the amount and have a large wad of cash ready, OR they are going to say send an invoice and I'll pay by bank transfer (or some other electronic means) which means the delay in producing and posting the invoice, then the delay in them getting around to paying the bill some time in the future when they can be bothered.

So in short, I can see a LOT more late payments to chase up. Something I currently only have to do for commercial customers (who won't pay instantly by cheque)

That is unless we all pay some money to someone to provide us with a portable POS terminal to take instant payment by credit card. Which will cost, so the costs will have to be passed on to the customer.

Now do you see the problem that concerns some of us?

But wouldn't the cost of a portable POS terminal be offset with the cost & time saving not having to fill in a paying-in book & physically going to the bank with the cheques & also avoid any bounced ones?